Accounting of a 401k loan

Dale Alspach
Tue, 16 Jul 2002 21:43:35 -0500

If I understand the situation correctly your 401k is investing in you.
I would create a liability account for the loan and give the 401k an asset
subaccount which represents the amount of the loan.
I don't know anything about the details of such a loan and the tax
consequences.  You may need to decide if you are repaying just
the principal or are paying interest into the 401k.

Dale Alspach